Core Charges

[flyboyron]

I noticed that Chevrolet has core charges on things like Headlights, Tail lamps, and some fascias.

 

Is this a common thing now?

 

I remember core charges on Cylinder Heads, starters, Alternators, and things like that, but have not heard of body parts having a core charge until recently.

 

Is that to recycle the plastic?

[MS3DALE]

They are just starting that now for some 2013 models,Ford has been doing it for awhile now,heres some more info. on it...

 

DESCRIPTION:

GM Customer Care and Aftersales will launch a new Fascia and Exterior Lighting Assembly Core Return Program effective March 1, 2013. A core charge of $50 for Head and Tail Lamp Lighting Assemblies and $75 for Front and Rear Fascias will be assessed on many new or mid-cycle enhanced GM vehicles. These core charges will be reflected on the March 1 Pricing Media provided to your Data Service Provider. This core return program will allow GM to recover and permanently remove used and damaged fascias and lighting assemblies from the market and reduce material scrap going to landfills. It will also reduce the supply of salvage and refurbished product that negatively impact both product quality and sales of new OEM product in the marketplace.

The initial list of part numbers included in this return program is attached. Going forward all Front and Rear Fascias and Head and Tail Lamp Lighting Assemblies on new model or mid-cycle enhanced GM vehicles will include the applicable core charges. Also attached is a Core Flyer that can be used to notify your customers of the new core program and inform them on how the core eligible parts should be handled. We recommend that you attach this flyer to all core eligible parts being delivered to your customers for the first 30–60 days of this program.

EFFECTIVE DATE:

March 1, 2013

QUALIFICATIONS:

A core charge of $50 for Head and Tail Lamp Lighting Assemblies and $75 for Front and Rear Fascias will be included on all new model and mid-cycle enhanced vehicles.

Initial vehicle models include:

2013

Chevrolet Malibu

Chevrolet Traverse

Chevrolet Impala

Cadillac XTS

Cadillac ATS

Buick Enclave

Buick Verano

GMC Acadia

 

Also,the purpose is to try and keep the old parts out of the hands of the aftermarket industry

 

Why did GM create this program?

GM and our dealers currently only capture 29% of the market for GM replacement fascias and 24% of the market for GM replacement lighting assemblies. Reconditioned/Salvage parts have taken 43% of the fascia and 36% of the lighting assembly market for GM vehicles. This core charge action will allow GM and its dealers to recover and permanently remove many of the used and damaged fascias and lighting assemblies from the market. Removal of this core will reduce the supply of refurbished product that negatively impacts both product quality and dealer sales of new OEM product in the marketplace.

As this new program will require some additional work for dealers and independent body shops, do we risk driving more customers to use an aftermarket product?

The design of the headlamps, tail lamps, and fascias on many new or mid-cycle enhanced GM vehicles will now be protected by design patents. These patents protect the design of our product from aftermarket copies for a defined number of years. The patent protection strategy together with the new core program competitively positions us against our primary competitors (aftermarket and reconditioned/salvage). Body shops prefer to use OEM parts and these strategies will help them avoid insurance company pressure to use aftermarket or reconditioned parts by reducing the available supply.

Are any other OE Manufacturers putting core charges on Fascias and Lighting Assemblies?

Yes, Ford Motor Company has been putting core charges on new model vehicle fascias and lighting assemblies for over a year so most body-shops should have already been exposed to handling these cores. Also, many other OE Manufacturers are currently looking at fascias and lighting assemblies to possibly add core charges in the future.

Since Ford has already been charging core on new model vehicle Fascia’s and Lighting Assemblies have they seen any improvement in Market Share versus Fascia’s and Lighting parts that don’t carry the core charge.

Yes, Ford has indicated that they have seen over a 10% difference in market share on same model year parts that have the core versus those that do not have the core charge.

Does this program cover all GM fascias and lighting assemblies?

We are starting with a small number of parts that only service specific 2013 and newer vehicles. Parts covered under the new core program will continue to grow as new models are released or go through mid-cycle enhancements.

I understand that initially this program will be very small in the number of core returns, but in a few years it will grow. What is GM going to do when the number of cores begins to grow substantially?

Initially the number of cores needing to be returned by dealers will be very small, particularly for non-wholesaling dealers. CCA plans on monitoring the volume and will develop additional processes in the future to help alleviate storage and handling issues.

Do fascias need to be returned in their package (scrim, box)?

No, fascias cores will be returned without packaging but must include the peel-away portion of the label to receive core credit.

What if the fascia or lighting assembly is badly damaged?

Broken, damaged, or destroyed lighting assemblies are considered acceptable as cores as long as they are in the replacement part’s box. Broken, damaged, or destroyed fascias are considered acceptable as cores as long as they are labeled with the peel-away portion of the replacement part’s label.

What if the part being replaced is an aftermarket part?

Parts included in this program are protected by design patents and should not have aftermarket copies.

[kstruckcountry]

Translation: We aren't making enough money and other people are.

[JrocK817]

Translation: We aren't making enough money and other people are.

exactly

[MS3DALE]

Translation: We aren't making enough money and other people are.

 

Yeah,but I certainly don't have an issue with keeping the old cores from the aftermarket,or the core charges GM puts on them. We have a lot of issues with aftermarket parts fitting.

[kstruckcountry]

I'm not disagreeing with their decision, it will probably help them in the long run. But for independent body shops it could be a hassle. I'm not concerned either way, as most parts I would need for my truck don't come from GM.

[waumo1]

Just another way to screw the customer out of more $ - period. Used to be called "Revenue enhancement".

[MS3DALE]

Just another way to screw the customer out of more $ - period. Used to be called "Revenue enhancement".

 

You return/give your old damaged part back to the dealer,you either don't get charged the core if you give the old part back then,or you get credit when you do,no different from when you might buy a starter,power steering pump,alternator,etc....they usually ask for the old part back,been like that for years.

[montyss]

First time for core charges for us was today , its was from Ford for a bumper and taillight . For a credit they have to go back in the original packaging and boxes .

[MS3DALE]

First time for core charges for us was today , its was from Ford for a bumper and taillight . For a credit they have to go back in the original packaging and boxes .

 

Yep,Ford's been like that for a few years now.

[waumo1]

You return/give your old damaged part back to the dealer,you either don't get charged the core if you give the old part back then,or you get credit when you do,no different from when you might buy a starter,power steering pump,alternator,etc....they usually ask for the old part back,been like that for years.

I fully understand that concept of core charges for rebuild-able equipment . However in this case, yesterday a headlight assembly was X dollars free and clear. Today it is now X + $50 which is the value of the core. This effectively raises the price to me by $50 no matter how you look at.

[montyss]

It was $70 core charge on the rear cover for a Ford Escape . It was the Ford drivers first time seeing the core on the bills for body parts .

[hzhardy]

what they are stoping is body shops buying damaged part from the dealer body shops under the table. A shop I worked for did it all the time as most dealer will replace a fender rather than puddy an easy ding. this will not affect sourcing parts for places like LKQ as those parts are pulled off total losses. I personally hate aftermarket parts as there is alway fitment issues and they always come damaged due to poor packaging. This can go two routes since GM will have an monopoly. A the prices will go up and more car will be totaled due to cost to repair and the used parts will make there way back into avaialbility and the program will fail over time or B they will lower their price due higher sales. Either way it will not affect the operation of a lower scale body shop to much.